Oracle-Sun layoffs will be higher than initially expected, according to a government regulatory filing.
The federal Securities and Exchange Commission filing that Oracle issued late Friday is an amendment
Requires Free Membership to View
to its restructuring
plan for Sun that it filed in February. That plan estimated restructuring costs at $325
million. According to the new filing, Oracle management decided to expand the restructuring plan,
adding costs estimated at between $675 million and $825 million. Oracle didn’t say in its filing
how many jobs that will mean, but early estimates put the
Oracle-Sun layoffs as high as 10,000 employees, or more than one-third of the Sun workforce that
existed before the acquisition.
“Oracle expects that $550 million to $650 million of these additional costs will be restructuring charges related principally to employee severance costs, $85 million to $115 million will relate to facilities costs, and $40 million to $60 million will relate to contract termination costs,” the filing reads.
Adding the new costs to existing ones means the total cost for the Sun restructuring has jumped from $1 billion to $1.15 billion. Oracle may divulge more details during its next earnings report later this month.
That estimate stands in contrast to Oracle CEO Larry Ellison’s claims in January that Oracle would lay off only 1,000 workers at Sun while hiring 2,000. The recent filing said that Oracle is reducing the Oracle-Sun workforce mostly in Europe and Asia and that it started handing out pink slips to employees on May 28.
In January, during an Oracle-Sun webcast announcing the close of the deal, Ellison said he expected to make about $1.5 billion in operating profit from Sun in the first year, and he expected it to go up from there.
Join the conversationComment
Share
Comments
Results
Contribute to the conversation